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Economic Growth and Trade

Uganda economic growth
Uganda is building its export competitiveness in sectors like horticulture

Uganda has enjoyed an annual economic growth rate averaging between 6 percent and 7 percent over the last five years, in large part due to market-based reforms and sound economic policies. The share of the population living beneath the poverty line has fallen from 56 percent in 1992 to the current level of 23 percent. Yet millions of Ugandans remain in dire poverty. Faster economic growth is hampered by the country's undeveloped transportation and electricity networks, low agricultural productivity, lack of transparency, and regulatory challenges, including corruption, which keep business costs high and hinder investment, economic growth and job creation.

USAID builds Uganda's capability to mitigate the environmental impacts of oil exploration and production. USAID’s ecotourism programs provide local communities opportunities to develop tourism businesses and services that will enhance communities’ connection to Uganda’s natural resources, which will reduce threats to biodiversity and protect Uganda’s diverse landscapes.

USAID works closely with the Government of Uganda to implement activities that promote increased trade.  USAID’s Trade and Investment Hubs are designed to reinforce regional and bilateral efforts to strengthen Africa's economic competitiveness and assist countries to take greater advantage of the trade opportunities provided by the African Growth and Opportunity Act (AGOA) and other global trade initiatives. The Trade and Investment Hub programs include trade capacity building, improvements to the private sector enabling environment, better market access and opportunities, trade facilitation, food security programs, and export promotion support for African products.

Learn more: East Africa Trade and Investment Hub

Private Sector Development

Constraints to private sector competiveness in Uganda include the lack of capital available to potential entrepreneurs and investors, undeveloped infrastructure, and a weak enabling environment for business. USAID’s investments in agriculture are central to efforts to increase trade and develop the private sector. USAID continues to work closely with the Government of Uganda and other development partners to enhance private sector competitiveness and increase investment in roads and other infrastructure. The USAID Development Credit Authority promotes private sector investment by providing credit to agriculture enterprises.

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Last updated: November 20, 2015

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